Stirlen v. Supercuts, Inc.
California Court of Appeals
60 Cal. Rptr.2d 138 (1997)
Supercuts (codefendant) employed William Stirlen (plaintiff) as VP and CFO under a standard, non-negotiable executive employment contract requiring employees to arbitrate all disputes with damages limited to breach-of-contract remedies, while Supercuts itself remained free to sue in court without any similar limits. After Stirlen reported accounting irregularities and operational problems to CEO David Lipson (codefendant) and other executives, Supercuts fired him, and he sued for wrongful termination; Supercuts moved to compel arbitration, but the trial court found the arbitration clause unconscionable and refused to enforce it.
Whether courts may refuse to enforce as unconscionable one-sided contract terms disfavoring one party who had no meaningful choice but to accept them.